Notice to credit cardholders on changes in computation and fees

Dear PAO,

I have been a credit card user for almost five years now. For that duration, there have been no changes in the computation of my outstanding balance and imposable fees. However, as I have been browsing my Statement of Account, which I received yesterday, I noticed that my bank changed the computation of my outstanding balance and the fees that I was asked to pay. Is the bank allowed to change computation without prior notice to its credit cardholders?

May

Dear May,

Please be informed of Sections 13 and 25 of Republic Act (RA) 10870, otherwise known as the «Philippine Credit Card Industry Regulation Law,» which state that:

«Section 13. Changes in the Manner of Computation and Fees. — The cardholder shall be notified at least ninety (90) days prior to any change in the manner of computation of the outstanding balance and the amount of fees to be imposed on the cardholder. If the cardholder finds the change to be unacceptable, he/she shall have the right to terminate his/her account with the credit card issuer subject to Section 25 of this Act. x x x

»Section 25. Termination of Account. — A cardholder may cancel or terminate his/her account anytime; Provided, That the cardholder either pays in full or enters into another agreement for payment of the outstanding balance and new purchases, debits and deferred installments payment may be made either through a one-time payment or on installments within a fixed period of time: Provided, further, that repayment in installments shall only be generally subject to interest unless there is a violation of the new agreement."

Based on the above-stated law, it was provided that credit cardholders should be notified at least 90 days prior to any change in the manner of computation